How Manufacturers Can Minimize Supply Chain Risks with a TMS

In an era of global supply chains, opportunities for manufacturers to drive growth and expand into international markets are abundant. Unfortunately, this global reach also comes with various supply chain risks, presenting challenges for modern logistics teams. Thankfully, the right tools can help teams manage these risks and avoid costly shipping mistakes.

Automated TMSes can help manufacturers react quickly to supply delays and increase the agility of logistics operations, minimizing ever-present supply chain risks. This integral technology simplifies and strengthens supply chain management and shipment protection, preventing cargo damage, transportation inefficiencies, and market disruptions.

Reduce and resolve cargo damage

For manufacturers looking to produce high-quality products, in-transit cargo damage is a constant threat. Damaged goods increase the burden on logistics teams, thanks to the financial and time-related costs of filing damage claims and obtaining replacement shipments. Eventually, manufacturers may lose their customers’ trust.

A TMS can address these costly mistakes. By streamlining the process of tackling damaged shipments for logistics teams, TMSes can recoup dire losses. Logistics teams can easily access a wide range of supply chain analytics, such as carrier data and order details, to gather critical evidence of damage. Afterwards, they can quickly file a damage claim, assisted by automated carrier notifications and claims tracking.

TMSes don’t just help with loss reduction—they can also reduce the risk of future shipment damage. By optimizing carrier selection based on safety ratings and past performance, TMSes ensure that only the best carriers transport manufacturers’ shipments. They also manage carrier insurance information so that all carriers are equipped with up-to-date liability protection in the event of cargo damage.

Reduce opportunities for corruption

Not all supply chain risks come from outside sources. When in-house supply chain operators make unethical decisions, manufacturers must confront serious obstacles—including major threats to profits and supply chain efficiency. By automating countless logistics tasks, from order scheduling to carrier selection, TMSes can combat ever-evolving corruption.

Disparate transportation systems and manual logistics operations waste time, complicate data retrieval, and open up manufacturers to rogue spend. If manufacturers’ warehouses were allowed to make their own independent carrier decisions, for example, certain locations might make selections based on personal interests or bribes.

TMSes aim to eliminate employee error and corruption by standardizing workflows and making objective supply chain decisions. When choosing carriers, TMSes consider variables like price, time-to-delivery, and shipping equipment. When coordinating orders, they consolidate shipments based on size, weight, and route efficiency, minimizing unethical behavior and driving overall efficiency.

Pivot supply lines amid market disruptions

In response to the COVID-19 supply chain shutdowns, manufacturers began to take different approaches to protect supply chains. Some nearshored supply to countries closer to their markets, for example. For those in search of an alternative strategy, adopting a TMS can protect against future market disruptions.

By consolidating transportation data into a single centralized system, TMSes enable complete oversight of carriers, orders, and shipping routes. This groundbreaking visibility allows manufacturers to track orders in pre-shipment, in-transit, and post-shipment phases.

In the face of geopolitical conflicts, health crises, and other disruptions, TMSes keep logistics teams on their feet. Automated exception alerts and load confirmations are sent in real time, enabling decisive action. Moreover, in the event of a bottleneck, shipment status updates streamline the development of alternative shipping routes, as well as carrier selection. TMSes also expand manufacturers’ carrier networks, providing logistics leaders with more transportation options than ever.

Harness transformative logistics technology

Modern risks call for cutting-edge solutions. From on-the-floor robots to smart factory innovations, technology is already transforming the way manufacturers operate. For example, within the automotive industry, automation is helping companies address supply chain risks, overcome disruptions, and navigate labor shortages. Likewise, TMSes can give manufacturers the visibility and agility they need to tackle a wide range of unpredictable supply chain hazards.

Honeybee TMS by CTSI-Global centralizes data from a wealth of manufacturer transportation systems to provide a holistic view of supply chains. By automating manual tasks, our proprietary TMS helps manufacturers reduce costs and human error. Armed with powerful oversight and data, manufacturers candrive efficiency and react flexibly to today’s most pressing supply chain threats.

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